Budgetary target of $14.088 bn: Pakistan receives $2.37 billion in loans, grants

ISLAMABAD: Pakistan’s foreign inflows in form of loans and grants stood at $2.37 billion during July and August of the fiscal year 2021-22 out of which the dollar bonds fetched over $1 billion.

Against the budgetary target of $14.088 billion, the government has so far received $2.37 billion disbursements as a major chunk of loans in the first two months of the current fiscal year. According to the disbursement of foreign loans and grants, World Bank, Asian Development Bank, Islamic Development Bank, Asian Infrastructure and Investment Bank and others disbursed $879 million loans. Out of total inflows from the multilateral donors, a major chunk of $867 million was provided as loans and only $11 million was provided as grants.

The reliance on commercial borrowings continued as Islamabad received $363.2 million to bridge budget financing on immediate basis. China was top among the bilateral donors by providing $73.5 million in this period, followed by US that provided $14 million in the same period. Many bilateral donors’ provided no disbursements including France, Italy, Saudi Arabia, UK and some others. Similarly, the EIB and EU disbursed nothing in the current fiscal.

Among the multilateral creditors, the ADB disbursed $280.73 million in the first two months of the current fiscal while AIIB disbursed $37.77 million. The WB’s IBRD disbursed $ 55.59 million and IDA provided funding of $86.78 million. The Islamic Development Bank disbursed $0.81 million and Islamic Development Bank (ST) provided $413.21 million in this period.The IFAD disbursed $4.48 million and WB’s MTDF provided $0.03 million.

The government launched an international bond to generate $1.04 billion in July 2021. It also raised $363.26 million on account of commercial borrowings in the first two months of the current fiscal.